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Putnam County insurance costs rise modestly; cyber insurance premium reduced after renegotiation
Summary
Insurance officer Matt Bruno outlined budget changes: cyber insurance dropped about 23% after broker changes, some premiums rose (excess insurance +7.2%, general liability +7.9%), and reserves were proposed to manage workers' comp and liability exposure.
Matt Bruno, who oversees insurance budgeting, told the Audit & Administration Committee that the tentative budget reflects a mix of small premium increases and targeted savings from market negotiations.
Bruno said the county reduced its cyber-insurance premium by about 23% after changing carriers and negotiating terms, "we were able to decrease that premium by 23% or save $5,000 on this policy alone," and lowered the deductible. He said the crime policy (Travelers) renewed with a small decrease and the golf-course/selective policies fell modestly because of a claim-free experience.
At the same time, Bruno said excess insurance rose roughly 7.2% and general liability increased about 7.9%, partly because of recent large settlements that can affect law-enforcement-liability rates on the loss run a year later. He described a self-insured workers' compensation arrangement with a $1,500,000 SIR (self-insured retention) and said raising that to $2,000,000 would materially reduce premiums but increase retained risk.
"If I estimated a $1,200,000 premium...when you add that all up with the crime cyber golf, you get 1.548 million," Bruno said, describing how the various lines add to the insurance total; his tentative insurance total was near $1.6 million.
Why it matters: Insurance premiums and self-insurance choices affect both the county’s operating budget and its exposure to large claims; settlements that feed into loss runs can push premiums higher in subsequent years.
Next steps: Bruno said he would work with brokers and the law department to explore options, including leveraging lessees— insurance where appropriate to reduce county exposure.
